Just in time for the local elections, Mervyn King tries to calm the fears of jittery potential Labour voters:
"Banks previously over-willing to lend are now too reluctant, even with credit-worthy borrowers, it suggested.
This increased fear of risk has itself undermined confidence in financial institutions and made them reluctant to lend to each other, the Bank added."
Good boy...good doggie! Gordon has a biscuit for you! Yes he does...